On October 12, the Ministry of Finance and the State Taxation Administration announced the commencement of a countdown to reduced export tax rebate benefits for China’s new energy vehicles (NEVs). According to the announcement, beginning April 1, 2027, the value-added tax (VAT) export rebate rate for NEVs will decrease from 13% to 9%, while the consumption tax rebate policy will remain intact. The applicable rebate rate will be determined by the export date specified on the export declaration form. For instance, even if a sales contract is signed this year, if the vehicle is declared for export after April 1 of the following year, the new rate will apply.

Previously, the photovoltaic and lithium battery sectors underwent similar policy adjustments, and now the NEV sector is also moving toward a more neutral policy stance. Industry experts note that while reduced export tax rebates imply fewer policy incentives, they will incentivize Chinese automakers to bolster their competitiveness. Looking ahead, Chinese automakers expanding globally will no longer rely solely on policy support and cost advantages. Instead, they will transition toward a model of holistic competition encompassing product innovation, brand development, and localized operations. Concurrently, the foreign trade “new triumvirate”—comprising NEVs, photovoltaic products, and lithium batteries—will collectively enter a new phase of “systemic competition.”